Diederik W. van Liere

Embedded coordination in a business network

Information and communication technology enables a firm to maintain more links with more companies at much lower costs than before. This combined with the increasingly standardization of business processes and the application of modularity at the process level leads to embedded coordination. This case study describes how three unconnected business networks were integrated using modularity at the business process, or activity component, level and the role standardization played to implement embedded coordination. The case study was conducted at ABZ, a trusted Business Service Provisioner in the Dutch insurance industry. This study suggests that embedded coordination leads to improved performance of the business network under the condition that standardization is enforced.

How far does a tweet travel?: Information brokers in the twitterverse

In this paper, I present evidence on the geographic diffusion patterns of information of Twitter users. I identify three possible information diffusion patterns: random, local and information brokerage and show that the information brokerage pattern describes best how users of Twitter diffuse information through the act of retweeting.

Network horizon: An information-based view on the dynamics of bridging positions

We propose an information-based view of the dynamics of network positions and use it to explain why bridging positions become stronger. We depart from previous network dynamics studies that implicitly assume that firms have homogenous information about the network structure. Using network experiments with both students and managers, we vary a firms network horizon (i.e., how much information a firm has about the network structure) and the network horizon heterogeneity (i.e., how this information is distributed among the firms within the network). Our results indicate that firms with a higher network horizon occupy a stronger bridging position, especially under conditions of high network horizon heterogeneity. At a more general level, these results provide an indirect validation of what so far has been an untested assumption in interfirm network research, namely that firms are aware of their position in the overall network and consciously attempt to improve their position.

The Network Factor — How to Remain Competitive

Abstract The network rather than the individual firm is becoming the focal point of economic development and business success. What should executives and managers do particularly well, or different, to thrive in the networked world? Based on the Discovery Event “The Networked Experience”, Beijing 18–23 May 2008, hosted by Tsinghua University (see www.sbniweb.org), we develop a number of propositions, or guidelines to understanding the network factor in todays competitive business arena. Building on the work of the Smart Business Network Initiative established in 2004 (Vervest, van Heck, Preiss, & Pau, 2005) we call for action to develop a unified theory of business networks.

Theme of the Special Issue-IS in interorganizational networks

__Abstract__ Theme of the Special Issue: This special issue explores the traditional and unique aspects of information systems in interorganizational networks. What makes the application of information systems different when applied between organizations and not, solely, within an organization? One key difference is the lack of central command in interorganizational systems, a characteristic often found in enterprise systems. Absent a single hierarchical control, information systems of different network actors must link and combine in ways that are driven more by ‘market-like’ behavior. Non-harmonized processes of differing actors must quickly connect together and provide end-to-end control to all actors involved without the benefit of central command. The pervasive use of information network technology such as the Internet makes ‘process linking’ and ‘shared control’ key challenges for effective networked information systems. This is a technical as much as a managerial challenge. It begins with a fundamentally different point of departure: Interorganizational networks rather than individual companies are often a determining factor in competitive advantage. Organizations and companies combining in agile and dynamic networks are able to generate exceptional or ‘smart’ results that the individual company will not be able to match or improve (Vervest et al., 2004; van Heck & Vervest, 2007; van Heck & Vervest, 2009).

Network Horizon and the Sustainability of Network-based Competitive Advantage

Recognizing advantageous network positions is key for firms to obtain and sustain competitive advantage. Exploiting these opportunities requires that firms have information about the network structure. We introduce a construct called network horizon to capture this information. We demonstrate, using a computational model of network dynamics, that a firms network horizon as well as the heterogeneity of network horizons in the network, are two important determinants for the sustainability of network-based competitive advantage.

Business network orchestration in digital ecosystems

The ongoing evolution of interorganizational information systems (IOS) into industry-wide systems (IIOS) or digital ecosystem platforms raises new questions for researchers and practitioners alike, in particular the question of how organizations can gain advantage of these new ecosystems by orchestrating their business network. In an empirical study of the Dutch insurance industry, we use network theory and interorganizational systems theory to show that participation in a digital ecosystem leads to organizations orchestrating their network position into a larger portfolio of suppliers as well as a more differentiated portfolio of suppliers. A more differentiated supplier portfolio in turn leads to superior organizational performance.